Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?
Author
al-Sartawi, Abd al-Muttalib Muhammad Muslih
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 11, Issue 2 (31 Dec. 2019), pp.303-321, 19 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2019-12-31
Country of Publication
Malaysia
No. of Pages
19
Main Subjects
Abstract EN
Purpose – This paper aims to investigate the relationship between the composition of Sharīʿah supervisory boards (independence and frequency of meetings) and the performance of Islamic banks in the Gulf Cooperation Council (GCC) countries.
Design/methodology/approach – The study developed a multiple linear regression model, and data were collected from the annual reports of 48 standalone Islamic banks listed in the GCC countries covering the period between 2013 and 2017.
Findings – The results showed a statistically significant and negative relationship between the composition of the Sharīʿah supervisory boards and the performance of Islamic banks.
Research limitations/implications – As the current study used only one indicator, that is Return on Assets to measure performance, it is recommended to expand the framework of this study, through the addition of market-based performance indicators such as Tobin’s Q.
Practical implications – This study recommends the GCC countries to follow a more proactive Sharīʿah governance model to strengthen their frameworks from both regulatory and non-regulatory aspects.
Originality/value – The study contributes to the Sharīʿah governance and Islamic banking literature relating to the GCC countries as previous studies gave no attention to the composition of Sharīʿah supervisory boards.
American Psychological Association (APA)
al-Sartawi, Abd al-Muttalib Muhammad Muslih. 2019. Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?. ISRA International Journal of Islamic Finance،Vol. 11, no. 2, pp.303-321.
https://search.emarefa.net/detail/BIM-965293
Modern Language Association (MLA)
al-Sartawi, Abd al-Muttalib Muhammad Muslih. Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?. ISRA International Journal of Islamic Finance Vol. 11, no. 2 (2019), pp.303-321.
https://search.emarefa.net/detail/BIM-965293
American Medical Association (AMA)
al-Sartawi, Abd al-Muttalib Muhammad Muslih. Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?. ISRA International Journal of Islamic Finance. 2019. Vol. 11, no. 2, pp.303-321.
https://search.emarefa.net/detail/BIM-965293
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 318-321
Record ID
BIM-965293